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Demand Soars as Homes Are Selling Faster

In February, homes were on the market for a median of 98 days—that’s down from 123 days in February 2011.

615 Clark St, Tumwater WA 98512 - we sold this home in just 5 days!

Homes are selling faster as buyer demand picks up, leaving a very low supply of homes left for sale, according to the latest February MLS data figures from Realtor.com. Homes in February sold faster than in any February since 2007, according to the site.

In some markets, homes are spending even less than a month listed for sale, most notably in places like California. 

For example, in Oakland, Calif., homes spent a median number of 14 days on the market in February before they were either sold or removed from the market for other reasons, according to the Realtor.com data. Sacramento’s median number of days on the market was 21. A total of eight metros in the top 10 for fastest selling times were in California, with only Denver (median 28 days) and Seattle (median 33 days) rounding out the list. 

The median number of days on the market was also less than two months in places such as Phoenix, Washington, D.C., Detroit, Minneapolis, Atlanta, Dallas, Orlando and Fort Lauderdale.

With home sales picking up pace, buyers and sellers are less likely to see price reductions on homes and to see more multiple offer situations, Curt Beardsley, vice president with Move, which operates Realtor.com told USA Today.

Data Courtesy of DAILY REAL ESTATE NEWS 

REALTOR Code of Ethics

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Pending Home Sales Near Three-year High

More homebuyers signed contracts to buy last month than any time since April 2010, according to the National Association of Realtors. And, not counting tax credit-induced spikes, pending home sales last month were the highest in six years.

Pending sales of existing homes, or contracts signed but sales not yet closed, rose 4.5 percent from December and were up 9.5 percent from a year ago.

"Favorable market conditions and job growth have unleashed a pent-up demand," said NAR Chief Economist Lawrence Yun. "Most areas are drawing down housing inventory, which has shifted the supply/demand balance to sellers in much of the country."

The Washington-based association has also revised higher its expectations for price gains this year, to 7 percent or more, from its previous forecast of home values rising as much as 6 percent.

Pending home sales rose in all regions of the country, led by the Midwest, where contract activity was up nearly 18 percent from a year ago.

Data courtesy of Jeff Clabaugh, Washington Business Journal.

REALTORS Working Hard For Everyday People

·         Mortgage cancellation relief is extended for another year. Households that have mortgage debt forgiven by a lender in 2013 as a result of a modification, short sale, or foreclosure will not have to pay tax on the amount forgiven.

·         Mortgage insurance premiums ­remain deductible. Tax filers making less than $110,000 who pay for mortgage insurance can deduct the cost of their premiums on their 2012 and 2013 tax returns.

·         15-year straight-line cost recovery on leasehold improvements is extended. For qualified leasehold improvements on commercial properties, 15-year depreciation is extended through 2013 and made retroactive to cover 2012.

·         Energy efficiency tax credit remains in force. The 10 percent tax credit, up to $500, for home owners who make energy efficiency improvements to an existing home is extended through 2013 and made retroactive to cover 2012.

New numbers just released from NWMLS: data for today's buyers and sellers

Punxsutawney Phil’s prediction of an early spring is showing up in the latest housing activity report from the Northwest Multiple Listing Service. Its statistics for January showed a 14.4 percent year-over-year increase in pending sales and a 23.6 percent jump in closed sales amid a 31.3 percent decline in inventory.

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The MLS reported 4,289 closed sales during January, surpassing the year ago total by 820 transactions. Last month’s completed sales of single family homes and condominiums had a median selling price of $239,300. That’s up 11.3 percent from the year-ago figure of $214,990.

Supply has dwindled to less than two months in some counties close to job centers, spurring bidding wars. Some buyers are even resorting to writing “love letters” to win over sellers in these competitive situations. Brokers also report an increasing number of buyers have little or no interest in making offers on short sales.

As a Broker, the ratio between active buyers and available inventory is so out of balance, even homes that were hard to sell for various reasons are being snapped up so those sellers were wise to list.   So what does this mean exactly?  Now is a good time for sellers to list. Sellers who are considering a spring or summer listing may want to consider listing now as demand is outweighing supply.  This has given well priced sellers the advantage with the benefit of quick sales and multiple offers.

With multiple offers on the rise, buyers are seeking an edge as they vie for a desirable home. Brokers are reporting an increase in the use of heartfelt letters from would-be owners who want to distinguish themselves and forge an emotional bond with the sellers.  Buyers should not forget the human element of appealing to a seller in this multiple offer market.  You just never know who is on the other side of a transaction and what might be important to them.

Brokers in the 21 counties served by Northwest MLS added 7,096 new listings to inventory during January. That total was just slightly more than the number of pending sales (7,016) that members reported last month and brought the total number of active listings at month end to 18,008.

Often we don’t see momentum to really begin building until mid February to the first part of March. This year, I think due to the already low inventory and the continued low interest rates, the market feels like it started mid January.

Despite imbalance between supply and demand, more and more buyers are opting not to purchase short sale homes because of the uncertainty involved. It’s not uncommon for a lender to choose at the last minute to foreclose on a property instead of approving a short sale. When this happens it leaves the buyer high and dry with 2-to-4 months of time invested, only to have to start the process all over again.  That can leave them at a disadvantage considering the current pace of sales.

Sixty percent of homes close to job centers are selling within the first 30 days of being listed – twice the average rate, according to figures compiled by MLS, therefore extremely favorable market conditions have brought a surge of local home buyers into the market. Historically low interest rates and a shortage of inventory are creating an environment for multiple offer situations.

Even though buyers are flocking to newly listed homes, sellers must be smart about pricing. In my area, a home that comes on the market that is well priced for the area, style and condition is usually under contract within a few days.  Additionally, homes that have been on the market for more than 20 days are sometimes subject to price reductions. Today’s market defies basic economics for supply and demand.  Interesting factors include sellers who are still holding back for myriad reasons. Some do not have the confidence or equity to put their home in front of buyers, and that is creating even more pent-up demand.

Yet another positive indicator of the state’s housing market recovery came from the National Association of Home Builders and its NAHB/First American Improving Markets Index (IMI). Six markets in Washington appeared on the list, the largest number since that gauge was created in September 2011. The IMI is based on six consecutive months of improvement in housing permits, employment and house prices.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.